Oracle to Buy Acme Packet for $1.7 Billion

By

Drew FitzGerald

Updated Feb. 4, 2013 2:04 p.m. ET

Oracle Corp. said it will acquire telecommunications gear maker Acme Packet Inc. in a deal valued at $1.7 billion, making its biggest move yet into the market for equipment that transports Internet data.

The deal provided a 22% premium to Acme's closing stock price Friday. Shares at first traded slightly above the agreed-upon price Monday, suggesting investors were hoping for a higher offer.